SINGAPORE (June 4): While Valuetronics Holdings’ FY20 earnings of HK$178.9 million (S$32.5 million) may have exceeded CGS-CIMB analyst Ngoh Yi Sin’s expectations, the company’s distribution per share (DPS) of 14 Hong Kong cents came in lower than expected.

In a Wednesday report, Ngoh says heightened trade tensions between the US and China could result in accelerated shifts of supply chain out of the Middle Kingdom. She also sees potential risks from its consumer lifestyle and selected Industrial and Commercial Electronics (ICE) customers, ICE in particular, as 41% of its sales delivered to North America are still subject to tariffs.

“We note that ICE demand remains resilient, while CE sales have been impacted by global consumer spending,” she says.

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